Marginal revenue function for the firm


A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. Which of the following is the marginal revenue function for the firm?

A. MR = 60 - 2Q

B. MR = 50 - Q

C. MR = 100 - Q

D. MR = 50 - 2Q

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Macroeconomics: Marginal revenue function for the firm
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